Pegged Pool
Pegged Pools are liquidity pools that are optimized for synthetic assets. Synthetic assets are a large class of assets that anchor their price to a certain target through various mechanisms. For example, USDT, USDC, BUSD, DAI are all anchored to USD; WBTC, RENBTC are anchored to Bitcoin. The exchange rates between similarly anchored coins are very stable and usually hover around 1:1. A DODO Pegged Pool defines a curve that concentrates liquidity at the anchored price, which fits the synthetic asset market pattern, and therefore provides ample liquidity.
With DODO, anyone can create a Pegged Pool and set the exchange ratio, slippage factor and commission rate to suit their needs. This pool is regulated by the PPM algorithm.
If your project issues its own USD stablecoin or other synthetic asset (e.g. sBTC), it can use a Pegged Pool to provide liquidity to it. Compared to a regular AMM pool, this curve can help your stablecoin gain 10x or even 100x more liquidity with the same TVL.
This is possible even if the synthetic token is not pegged 1:1 to an underlying asset. For example, it is possible to launch a token that is anchored to $0.1 USD.
The market between the synthetic asset and the target token is usually very stable, and in order to give users reliable expectations, the parameters of the Pegged Pool cannot be changed once set.
DODO maintains a Pegged Pool for DAI-USDT. This pool can often have a daily turnover rate of 50% to 100%, which is 5 to 10 times higher than competing products.
Last modified 4mo ago